Interim Report January - September 2017 Positive acknowledgements from customers lead to the launch of ConverLight in Denmark! Third quarter of 2017 Net sales for the period amounted to SEK 3.3 (1.0) million. Earnings for the period amounted to SEK -13.5 (-10.2) million, which corresponds to earnings per share of SEK -0.58 (-1.37). During the quarter, ChromoGenics invoiced and completed deliveries of dynamic glass to the head office of the Swedish Energy Agency, an office within Saldeen Real Estate and the first partial delivery to Atrium Ljungberg s project Gränbystaden in Uppsala. ChromoGenics has appointed Michael Felthaus to market and drive sales of ConverLight in Denmark. ChromoGenics is in an expansion phase and the progress is going according to the plan. The new share issue in conjunction with the IPO in March 2017 brought in net SEK 78 million. Cash and cash equivalents as at September 30 amounted to SEK 57 million. The Board is continuously working with securing the company s long-term financial position. 2017 2016 2017 2016 2016 SEK million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Net sales 3,3 1,0 6,1 2,8 3,0 EBITDA -12,0-8,6-32,7-33,1-42,2 Net income -13,5-10,2-37,4-37,8-49,5 EPS before dilution, SEK -0,58-1,37-1,95-6,57-7,60 EPS after dilution, SEK -0,58-1,37-1,95-6,57-7,60 Cash and cash equivalents at end of the period 56,7 2,1 56,7 2,1 8,5 ChromoGenics I Interim Report January September 2017 1 (14)
We are now taking the next step by launching ConverLight in Denmark! Comments from the CEO Our products are receiving a lot of interest from the market, and I am convinced that this is just the beginning of a successful growth journey for ChromoGenics. Our dynamic glass ConverLight offers property owners, architects, energy consultants, construction companies and players in the window and facade glass industry an attractive and cost-efficient solution for solar control. ConverLight increases the energy efficiency and indoor comfort of buildings and contributes to environmental certifications, which is high on the environmental agenda for the sustainability work of both the EU and the commercial sector. We are now taking the next step by launching ConverLight in Denmark with Michael Felthaus in the lead. Michael has a solid background within the glass and façade industry and will position the company in the Danish market. We are also speeding up within retro-fit sales, where existing, inefficient glass and solar protection are upgraded to ConverLight. During the quarter, deliveries of dynamic glasses to two retro-fit projects were completed: the head office of the Swedish Energy Agency in Eskilstuna and an office buildling owned by the real estate company, Saldeen Real Estate. The office building had previously had extensive problems with high heat radiation. Considerable amounts of energy were consumed for cooling, which resulted in unnecessarily high costs and a negative impact on the environment. ChromoGenics energy-effective technology has lowered the need to cool the building and the indoor climate has become much more comfortable. These are fantastic customer references for us as we take the next step in our expansion. We also completed the first partial delivery to the Atrium Ljungberg s project Gränbystaden in Uppsala during the quarter. The plan is to inaugurate the project prior to the 2018 Christmas holiday shopping season. After another successful Dynamic Glass Academy seminar, we are now taking the concept further in Sweden and Denmark. Through the seminar we create awareness and knowledge about the company s dynamic glass among customers and stakeholders as well as awareness about energy efficiency and comfort in buildings, with a focus on sustainability. The considerable interest we are meeting from various industry representatives confirms that our unique technology is creating good opportunities for continued successful expansion and future profitability! Thomas Almesjö, CEO ChromoGenics I Interim Report January September 2017 2 (14)
This report comments on developments during the periods July - September 2017 and January - September 2017 compared to the same periods in 2016, unless otherwise stated. Earnings Revenue amounted to SEK 3.3 (1.8) million for Q3 2017 and SEK 6.1 (1.8) million for January to September. ConverLight is still in its initial phase of sales and production. Costs of goods sold amounted to SEK 8.3 (2.3) million for the third quarter and SEK 20.7 (11.7) million for January to September. Costs continue to be initially high since it has not yet been possible to negotiate volume discounts, and material consumption and process costs will be high until the production yield has been optimized. Depreciation/amortization and impairment amounted to SEK 1.5 (1.6) million for the third quarter and SEK 4.6 (4.8) million for January to September. Selling and administrative expenses amounted to SEK 5.2 (2.8) million for the third quarter and SEK 13.3 (8.3) million for January to September. The increase is primarily due to the establishment of a sales and marketing unit and its activities to commercialize ConverLight. There were also administrative expenses related to the initial public offering. Development expenditure amounted to SEK 3.5 (6.1) million for the third quarter and SEK 9.5 (20.6) million for January to September. This decrease is primarily due to the reorganization completed at the end of 2016, as part of which the staffing for process development was reduced and ConverLight was commercialized. The company is continuing to develop its products and this work will intensify in the near future. The company s operating income amounted to SEK -13.5 (-10.1) million for the third quarter and SEK -37.1 (-37.7) million for January to September. The company is a development company in the process of transforming itself into a sales and production company. Sales are initially low and thus do not cover the company s total expenses. Net financial items amounted to SEK -0.2 (-0.1) million during the period January to September. No income tax was paid during the period SEK (0.0) million. Cash flow and financial position Cash flow from operating activities including changes in working capital amounted to SEK -10.2 (-9.3) million for the third quarter and SEK -38.1 (-31.1) million for the period January to September. Net cash flow from investing activities amounted to SEK -0.0 (-0.0) million for the third quarter and SEK -0.5 (-0.5) million for the period January to September. Net cash flow from financing activities amounted to SEK 0.0 (9.0) million for the third quarter. Non-current interest-bearing liabilities of SEK 49.7 million refer to a soft loan from the Swedish Energy Agency. Cash and cash equivalents amounted to SEK 56.7 million on September 30, 2017, compared to SEK 67.0 million on June 30, 2017, and SEK 8.5 million on December 31, 2016. At the end of the period, reported equity amounted to SEK 27.4 million, compared to SEK 40.9 million on June 30, 2017, and SEK -36.0 million on December 31, 2016. ChromoGenics I Interim Report January September 2017 3 (14)
Investments The company s investments are production equipment and capitalization of R&D expenditure and patents. The investments during the period January to September 2017 amounted to net SEK -0.5 (-0.5) million. Employees The average number of employees (FTE) were 13 (18) in the third quarter and 13 (19) for the ninemonth period. The average number of employees (FTE) including temporary staffing and consultants was 23 in the third quarter. There were 14 employees as at September 30, 2017, compared to 15 employees on June 30, 2017 and 21 employees on December 31, 2016. During the first six months, the number of employees decreased due an extensive reorganization at the end of 2016. At the same time, the company strengthened its organization in logistics, production and sales. Other production staff are currently contracted from an employment agency. Due to increasing interest, the company intends to continue to strengthen the sales and marketing unit. Share capital At an extraordinary general meeting on January 12, 2017, a resolution was passed on a 2:1 reverse split. In March, a new share issue was completed brining in SEK 117.3 million to the company and 13,800,000 new shares and 13,921,312 warrants, which were partially registered with the Swedish Companies Registration Office on March 20, 2017, and fully registered on April 7, 2017. Every fourth warrant is entitled to subscribe to one new share for SEK 10.20 during the period May 1-31, 2018. Both the shares and warrants have been traded on Nasdaq First North Stockholm since March 23, 2017. On September 30, 2017, share capital amounted to 4,642,865 represented by 23,214,326 shares, each with a quotient value of SEK 0.2. Reported equity amounted to SEK 27.4 million on September 30, 2017, compared to SEK -36.0 million on December 31, 2016. Shareholders Since March 23, 2017, ChromoGenics shares and warrants have been traded on Nasdaq First North Stockholm with G&W Fondkommission as Certified Adviser. On September 30, 2017, the largest shareholders in the company consisted of: 2017-09-30 Shareholder Ordinary shares Votes and capital K-SVETS VENTURE AB 5 112 350 22,0% NEW ENERGY SOLUTIONS II K/S 4 481 468 19,3% NORDNET PENSIONSFÖRSÄKRING AB 704 781 3,0% BENGT JOSEFSSON UTVECKLING AB 558 800 2,4% VOLVO GROUP VENTURE CAPITAL 504 467 2,2% FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION 366 695 1,6% HANDELSBANKEN LIV 358 925 1,5% CASTAB AB 354 555 1,5% WIMAN, KRISTIAN 305 234 1,3% DANSKE BANK INTERNATIONAL S.A. 300 000 1,3% OTHERS 10 167 051 43,8% TOTAL 23 214 326 100,0% Source: Euroclear AB ChromoGenics I Interim Report January September 2017 4 (14)
Significant risks and uncertainty factors The company is exposed to a number of financial risks: liquidity risk, credit risk and currency risk. The Board of Directors and the company s management team strive to manage these risks by identifying, evaluating and where appropriate mitigating them. For more information, see the 2016 Annual Report at http://www.chromogenics.com/sv/finansiella-rapporter/ Liquidity risk The new share issue in conjunction with the IPO during the spring raised SEK 78 million net. Cash and cash equivalents amounted to SEK 57 million on September 30, 2017. The Board is continuously working with securing the company s long-term financial position. Since the company has just started to commercialize its product, ConverLight, revenue is not expected to cover the company s expenses/costs in 2017. If the company s cash and cash equivalents does not cover the financing need until the company achieves a positive cash flow from its operating activities and the company cannot obtain additional capital contributions, there is a risk that a liquidity deficit may arise, which may result in the company being wound down. Currency risk Most of the sales are currently in SEK. If there are sales in USD and/or EUR, and these currencies appreciate against SEK, this will have a positive effect. A significant percentage of the material and process costs currently occur in USD and EUR and are translated/reported into SEK on payment days. If USD and/or EUR appreciates against SEK, this will have a negative effect on costs. The company is thus directly dependent on the exchange rates of these currencies. Employees ChromoGenics currently has a small organization of approximately 20 employees and is dependent on a number of key staff members. A weak financial position and initially weak profitability during the company s growth phase can make it difficult to recruit and keep key staff members. ChromoGenics I Interim Report January September 2017 5 (14)
Calendar January 31, 2018 Year-End Report 2017 March 22, 2018 Annual Report 2017 April 27, 2018 Interim Report January-March 2018 May 16, 2018 Annual General Meeting 2018 July 20, 2018 Interim Report January-June 2018 October 26, 2018 Interim Report January-September 2018 The Board of Directors and CEO hereby confirm that the interim report provides a fair and accurate view of the company s operations, position and performance and describes the significant risks and uncertainty factors facing the company. Uppsala, October 26, 2017 CHROMOGENICS AB (publ) CIN 556630-1809 Anders Brännström Poul Erik Schou-Pederson Peter Gustafson Chair of the Board of Board member Board member Directors Claes-Göran Granqvist Jerker Lundgren Mari Broman Board member Board member Board member Thomas Almesjö CEO For more information, please contact: Thomas Almesjö, CEO: +46 706 290 782 Susanne Andersson, CFO & Head of Communications: +46 730 668 904 info@chromogenics.com This information constitutes such information that ChromoGenics AB (publ) is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted by the abovementioned contact persons for publication on October 26, 2017, at 8:30 a.m. CET. About ChromoGenics ChromoGenics is a leader in dynamic glass with controllable heat- and light transmission. The company s unique electrochromic technology ConverLight, provides sustainable solar control with increased indoor comfort and energy efficiency. In 2016 the company started commercial sales to real estate projects in Scandinavia. ChromoGenics is located in Uppsala and has about 20 employees. The technology is derived from the world leading research center at Ångström Laboratory at Uppsala University. The plant has been partly financed by a conditional loan from the Swedish Energy Agency. ChromoGenics share (CHRO) is listed on Nasdaq First North Stockholm with G&W Fondkommission as Certified Adviser. www.chromogenics.com ChromoGenics I Interim Report January September 2017 6 (14)
Auditor s Report of Review of Condensed Interim Financial Information (Interim Report) prepared in accordance with IAS 34 and Chapter 9 of the Annual Accounts Act Introduction We have reviewed the condensed interim financial information (interim report) of ChromoGenics AB as at September 30, 2017, and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Focus and scope of the review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The expressed conclusion based on a review therefore does not have the same level of assurance as an expressed conclusion based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared for the company, in all material respects, in accordance with the Annual Accounts Act. Uppsala, October 26, 2017 Öhrlings PricewaterhouseCoopers Leonard Daun Authorized Certified Public Accountant Auditor-in-charge Niclas Bergenmo Authorized Certified Public Accountant ChromoGenics I Interim Report January September 2017 7 (14)
Table of Contents for the financial statements and other notes: Income Statement Statement of Financial Position Statement of Cash Flows Statement of Changes in Equity Note 1 Accounting Principles Note 2 Warrants Plan Note 3 Shares Note 4 Transactions with Related Parties Note 5 Pledged Assets and Contingent Liabilities Income Statement per isolated quarter Statement of Cash Flows per isolated quarter ChromoGenics I Interim Report January September 2017 8 (14)
Income Statement 2017 2016 2017 2016 2016 KSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Net sales 3 334 1 025 6 093 2 791 3 042 Costs of goods and services sold -8 338-2 290-20 711-11 677-14 973 Gross operating income -5 004-1 265-14 618-8 886-11 931 Selling expenses -2 985-1 549-6 953-4 147-5 548 Administrative expenses -2 248-1 246-6 383-4 150-6 202 R&D expenses -3 549-6 060-9 458-20 552-26 054 Other operating income and expenses 250 0 265 0 441 Total operating expenses -8 532-8 855-22 529-28 849-37 363 Operating income -13 536-10 120-37 147-37 735-49 294 Financial income 0 0 0 0 0 Financial expenses 0-76 -211-89 -192 Operating income after financial items -13 536-10 196-37 358-37 824-49 486 Tax on earnings Tax 0 0 0 0 0 Net income -13 536-10 196-37 358-37 824-49 486 Average number of shares before dilution 1) 23 214 326 7 462 290 19 146 878 5 760 923 6 511 604 Average number of shares after dilution 1) 23 214 326 7 462 290 19 146 878 5 760 923 6 511 604 Outstanding shares at the end of the reporting period before dilution 1) 23 214 326 7 462 290 23 214 326 7 462 290 9 414 326 Outstanding options at the end of the reporting period 1) 13 936 932 506 921 13 936 932 506 921 15 621 Earnings per share before dilution, SEK 1) -0,58-1,37-1,95-6,57-7,60 Earnings per share after dilution, SEK 1) -0,58-1,37-1,95-6,57-7,60 1) Adjusted after a 2:1 reverse split registered in January 2017. During the first quarter a new issue of shares was completed bringing 13,800,000 new shares and 13,921,312 warrants, of which 12,677,040 shares and warrants were registraded at Bolagsverket on March 20, 2017 and 1,122,960 shares and 1,244,272 warrants were finally registrated at Bolagsverket on April 7, 2017. ChromoGenics AB I Interim Report January - September 2017 9 (14)
Balance Sheet 2016 2016 2017 2017 2017 KSEK 30-sep 31-dec 31-mar 30-jun 30-sep ASSETS Non-current Assets Intangible assets 14 832 13 099 12 330 11 853 11 115 Property, plant and equipment 11 481 10 653 9 981 9 209 8 446 Total non-current assets 26 313 23 752 22 311 21 062 19 561 Current Assets Inventories and work in progress 176 0 282 3 910 1 592 Trade receivables 402 319 1 588 3 768 3 750 Other current receivables 1 637 2 129 12 908 4 713 3 163 Cash and cash equivalents 2 112 8 516 82 514 66 961 56 701 Total current assets 4 327 10 964 97 292 79 352 65 206 TOTAL ASSETS 30 640 34 716 119 603 100 414 84 767 EQUITY AND LIABILITIES Equity Restricted equity Share capital 1) 1 492 1 882 4 643 4 643 4 643 Fund, development expenses 0 298 298 298 298 Non-restricted equity Share premium reserve 217 769 223 620 321 662 321 582 321 582 Accumulated profit/loss -212 026-212 324-261 810-261 810-261 810 Operating income for the period -37 824-49 486-13 293-23 822-37 358 Total equity -30 589-36 010 51 500 40 891 27 355 Liabilities Non-current liabilities Non-current interest-bearing liabilities 2) 49 670 49 670 49 670 49 670 49 670 Total non-current liabilities 49 670 49 670 49 670 49 670 49 670 Current liabilities Current interest-bearing liabilities 5 000 14 000 0 0 0 Trade payables 3 130 2 076 3 532 2 744 4 492 Other current liabilities 3 429 4 980 14 901 7 109 3 250 Total current liabilities 11 559 21 056 18 433 9 853 7 742 TOTAL EQUITY AND LIABILITIES 30 640 34 716 119 603 100 414 84 767 1) Including 225 KSEK non registered share capital per 31 March 2017. 2) Refers to soft loans from the Swedish Energy Agency. ChromoGenics AB I Interim Report January - September 2017 10 (14)
Statement of Cash Flows 2017 2016 2017 2016 2016 KSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec OPERATING ACTIVITIES Profit/loss before tax -13 536-10 121-37 147-37 735-49 293 Adjustments for non-cash items: Financial income and expenses 0-76 -211-89 -192 Depreciation/amortization and impairment 1 537 1 583 4 640 4 762 7 300 Capitalization of R&D expenditure 0 0 0 0 0 Cash flow from operating activities -11 999-8 614-32 718-33 062-42 185 before changes in working capital Cash flow from changes in working capital Increase(-)/decrease(+) inventories 2 318-176 -1 592 970 1 146 Increase(-)/decrease(+) trade receivables 18 1 805-3 430-400 -319 Increase(-)/decrease(+) current receivables 1 550-149 -1 034 420 260 Increase(+)/decrease(-) trade payables 1 748 304 2 416 1 606 424 Increase(+)/decrease(-) current liabilities -3 859-2 504-1 730-615 768 Cash flow from changes in working capital 1 775-720 -5 370 1 981 2 279 Cash flow from operating activities -10 224-9 334-38 088-31 081-39 906 INVESTING ACTIVITIES Acquisition of property, plant and equipment and intangible assets -36-49 -450-504 -480 Sale of property, plant and equipment 0 0 0 0 Cash flow from investing activities -36-49 -450-504 -480 FINANCING ACTIVITIES New share issue 0 4 001 77 723 17 782 24 022 Borrowings 0 5 000 9 000 5 000 14 000 Repayment of debt 0 0 0 0-35 Cash flow from financing activities 0 9 001 86 723 22 782 37 987 CASH FLOW FOR THE PERIOD -10 260-382 48 185-8 803-2 399 CASH AND CASH EQUIVALENTS AT START OF THE PERIOD 66 961 2 494 8 516 10 915 10 915 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 56 701 2 112 56 701 2 112 8 516 Statement of changes in equity KSEK Share capital Fund, development expenses Non-registered share capital Statutory reserve Share premium reserve Accumulated profit/loss Total equity Equity 1 Jan 2016 26 515 0 0 0 200 534-237 559-10 510 Reduction of share capital -25 533 25 533 0 New share issues 900 23 120 24 020 Refund of de-registered warrants -35-35 Fund, development expenses 298-298 0 Operating income for the period -49 485-49 485 Equity 31 Dec 2016 1 882 298 0 0 223 619-261 809-36 010 KSEK Share capital Fund, development expenses Non-registered share capital Statutory reserve Share premium reserve Accumulated profit/loss Total equity Equity 1 Jan 2017 1 882 298 0 0 223 619-261 809-36 010 New share issues 2 761 0 114 839 117 600 New share issue fees -16 877-16 877 Operating income for the period -37 358-37 358 Equity 30 Sep 2017 4 643 298 0 0 321 581-299 167 27 355 ChromoGenics AB I Interim Report January - September 2017 11 (14)
Notes Note 1, Accounting principles ChromoGenics prepares its annual accounts in accordance with the Swedish Annual Accounts Act and the general guidelines of the Swedish Accounting Standards Board set out in BFNAR 2012:1, Annual Accounts and Consolidated Accounts (K3). The accounting principles have not changed compared to the previous year. Note 2, Warrant programs Allocation Maturity Total Purchase Redemption Open. balance Redeemed Matured Close. Bal. date date number of price price no of warrants no of warrants warrants SEK SEK 2017-01-01 2017-03-31 2015-02-16 2019-12-31 7 657 0,00 5,40 7 657 0 0 7 657 2015-07-23 2020-06-30 7 963 0,00 5,40 7 963 0 0 7 963 Total 15 620 0 0 15 620 All warrants have been adjusted for a 2:1 reversed split registered in January 2017. Both warrant programs are part of a unit issue with the right to subscribe to one share and one warrant that targets key staff and some owners and deviates from the shareholders preferential rights. Allocation Maturity Total Purchase Redemption Open. balance Redeemed Matured Close. Bal. date date number of price price no of warrants no of warrants warrants SEK SEK 2017-01-01 2017-04-07 2017-03-02 2018-05-31 13 921 312 0,00 10,20 0 0 0 13 921 312 Total 0 0 0 13 921 312 All above warrants were initiated in combination with the new share issue that was completed during the first quarter in combination with the listing on Nasdaq First North. 12,677,040 warrants were registered at Bolagsverket March 20, 2017 and 1,244,272 warrants were finally registered at Bolgsverket on April 7, 2017. Possession of four (4) TO1 entitles the holder to subscribe for one (1) new share in ChromoGenics at the rate of SEK 10.20 during the period 1 to 31 May 2018. The warrants are traded at Nasdaq First North Stockholm since March 23, 2017. Not 3, Shares No of Total no of Nominal Share capital Share prem- Statutory Record Year Event shares shares value, SEK SEK ium reserve reserve date 2016 New share issue 3 703 704 13 524 182 0,1 1 352 418 9 629 631 2016-06-10 2016 New share issue 1 400 397 14 924 579 0,1 1 492 458 3 641 032 2016-06-15 2016 New share issue 2 921 472 17 846 051 0,1 1 784 605 7 595 827 2016-11-16 2016 Exercising of 982 602 18 828 653 0,1 1 882 865 2 554 765 2016-11-17 warrants 2017 2:1 reversed split -9 414 327 9 414 326 0,2 1 882 865 2017-01-20 2017 New share issue 12 677 040 22 091 366 0,2 4 418 273 105 219 432 2017-03-20 2017 New share issue 1 122 960 23 214 326 0,2 4 642 865 9 320 568 2017-04-07 Total 23 214 326 4 642 865 321 582 773 Share development during the year On January 20, 2017, a 2:1 reverse split was registered following a resolution by an extraordinary general meeting on January 12, 2017. As of January 31, 2017, the total amount of outstanding shares amounted to 9,414,326, corresponding to share capital of 1,882,865:30 SEK with a nominal value of 0,2 SEK. In February 2017, ahead of a public announcement of a Prospectus, a decision was taken on a new share issue of total 13,800,000 shares and 13,921,312 warrants. The main owners prepaid their subscriptions of shares in December 2016 of a total of 9 MSEK and in January 2017 of a total of 9 MSEK. The new share issue was registered, only by a part, at Bolagsverket on March 20, 2017 and finally registered at Bolagsverket on April 7, 2017. As per September 30, 2017, the total number of share was 23,214,326 equivalent to a share capital of 4,642,865 SEK with a nominal value of 0,2 SEK. Note 4, Transactions with related parties Transactions between the company and members of the Board of Directors Claes-Göran Granqvist is invoicing the company a consulting fee of SEK 15,000 per month, totaling SEK 135,000 for the period January-September 2017. Transactions between the company and the company s primary owners In July 2016, a loan was raised totaling SEK 5 million from K-svets Venture AB at an interest rate of 5%. The loan was off-set against shares at the issue of new shares that was completed at the beginning of March 2017. In December 2016 a bridge financing agreement was concluded to finance the Company until a planned issue of new shares would be concluded ahead of a planned listing at Nasdaq First North. The bridge loans were financed by the main owners K-Svets Venture AB and New Energy Solutions II K/S, by SEK 9,0 million each, of which half paid in December 2016 and the remaining half paid by end of January 2017. The loans were at an interest rate of 5%. The loans and interest were off-set against shares at the issue of new shares that was completed at the beginning of March 2017. Note 5, Pledged assets and contingent liabilities KSEK 2016 2016 2017 2017 2017 Event Holder 30-sep 31-dec 31-mar 30-jun 30-sep Floating charge K-Svets Venture AB 5 000 5 000 5 000 0 0 Restricted cash Euroclear 0 0 50 50 50 Total 5 000 5 000 5 050 50 50 ChromoGenics AB I Interim Report January - September 2017 12 (14)
Income Statement per isolated quarter 2016 2016 2016 2016 2017 2017 2017 KSEK Iso. Q1 Iso. Q2 Iso. Q3 Iso. Q4 Iso. Q1 Iso. Q2 Iso. Q3 Net sales 0 1 766 1 025 251 1 015 1 744 3 334 Costs of goods and services sold -2 741-6 662-2 290-3 296-7 625-4 748-8 338 Gross operating income -2 741-4 896-1 265-3 045-6 610-3 004-5 004 Selling expenses -1 075-1 525-1 549-1 401-1 958-2 010-2 985 Administrative expenses -1 412-1 807-1 246-2 052-1 616-2 519-2 248 R&D expenses -7 146-7 536-6 060-5 502-2 905-3 004-3 549 Other operating income and expenses 56 470 0 441-11 26 250 Total operating expenses -9 577-10 398-8 855-8 514-6 490-7 507-8 532 Operating income -12 318-15 294-10 120-11 559-13 100-10 511-13 536 Financial income 0 0 0 0 0 0 0 Financial expenses -8-8 -76-103 -193-18 0 Operating income after financial items -12 326-15 302-10 196-11 662-13 293-10 529-13 536 Tax on earnings Tax 0 0 0 0 0 0 0 Net income -12 326-15 302-10 196-11 662-13 293-10 529-13 536 Average number of shares before dilution 1) 4 910 239 5 432 657 7 462 290 9 168 676 10 963 743 23 127 944 23 214 326 Average number of shares after dilution 1) 4 910 239 5 432 657 7 462 290 9 168 676 10 963 743 17 079 446 23 214 326 Outstanding shares at the end of the reporting period before dilution 1) 4 910 239 7 462 290 7 462 290 9 414 327 22 091 366 23 214 326 23 214 326 Outstanding options at the end of the reporting period 1) 591 201 506 921 7 477 910 15 621 12 692 661 13 936 932 13 936 932 Earnings per share before dilution, SEK 1) -2,51-2,82-1,37-1,27-1,21-0,46-0,58 Earnings per share after dilution, SEK 1) -2,51-2,82-1,37-1,27-1,21-0,46-0,58 1) All numbers are adjusted for a 2:1 reverse split registered in January 2017. During the first quarter 2017, a new issue of shares was completed bringing 13,800,000 new shares and 13,921,312 optiones, of which 12,677,040 shares and options was registraded at Bolagsverket on March 20, 2017 and 1,122,960 shares and 1,244,272 options was finally registrated at Bolagsverket on April 7, 2017. ChromoGenics AB I Interim Report January - September 2017 13 (14)
Statement of Cash Flows isolated quarters 2016 2016 2016 2016 2017 2017 2017 KSEK Iso. Q1 Iso. Q2 Iso. Q3 Iso. Q4 Iso. Q1 Iso. Q2 Iso. Q3 OPERATING ACTIVITIES Profit/loss before tax -12 316-15 294-10 121-11 559-13 101-10 511-13 536 Adjustments for non-cash items: Financial income and expenses -9-8 -76-103 -193-18 0 Depreciation/amortization and impairment 1 592 1 588 1 583 2 542 1 559 1 544 1 537 Capitalization of R&D expenditure 0 0 0 0 0 0 0 Cash flow from operating activities -10 733-13 714-8 614-9 120-11 735-8 985-11 999 before changes in working capital Cash flow from changes in working capital Increase(-)/decrease(+) inventories -265 1 411-176 176-282 -3 628 2 318 Increase(-)/decrease(+) trade receivables 0-2 207 1 805 83-1 269-2 180 18 Increase(-)/decrease(+) current receivables 606-37 -149-115 -1 149-1 266 1 550 Increase(+)/decrease(-) trade payables 723 617 304-1 179 528 148 1 748 Increase(+)/decrease(-) current liabilities -262 2 114-2 504 1 298-669 2 623-3 859 Cash flow from changes in working capital 802 1 898-720 263-2 841-4 303 1 775 Cash flow from operating activities -9 931-11 816-9 334-8 857-14 576-13 288-10 224 INVESTING ACTIVITIES Acquisition of property, plant and equipment and intangible assets -351-104 -49 21-119 -295-36 Sale of property, plant and equipment 0 0 0 0 0 0 0 Cash flow from investing activities -351-104 -49 21-119 -295-36 FINANCING ACTIVITIES New share issue 10 000 3 781 4 001 6 240 79 693-1 970 0 Borrowings 0 0 5 000 9 000 9 000 0 0 Repayment of debt 0 0 0 0 0 0 0 Cash flow from financing activities 10 000 3 781 9 001 15 240 88 693-1 970 0 CASH FLOW FOR THE PERIOD -282-8 139-382 6 404 73 998-15 553-10 260 CASH AND CASH EQUIVALENTS AT START OF THE PERIOD 10 915 10 633 2 494 2 112 8 516 82 514 66 961 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 10 633 2 494 2 112 8 516 82 514 66 961 56 701 ChromoGenics AB I Interim Report January - September 2017 14 (14)